JPY is back to being the leader on the day
The yen is a bit of a see-saw today, as the BOJ announcement saw it strengthen only for it to surrender gains when BOJ governor Kuroda spoke.
But now we're seeing the yen gain once again as European traders get into the thick of things.
Looking at the chart it's not surprising - buyers just simply are out of momentum. In the hourly chart for USD/JPY, it seems that the 23.6 retracement level near 111.18 is where a double-top is formed and the pair rejected the level and is back down now. Mike also noted strong offers sitting nearby at 111.20, which gives conviction for sellers to hold the level.
USD/JPY has fallen below the 100 and 200-hour MAs now, and the bearish bias remains in tact. It's a bit of range-trading still for the pair between 110.00 to 111.00, and nothing seems to be changing so far.
Meanwhile, taking a look at the opposite extremes of the day, we can see that AUD/JPY has broken some key technical levels on the hourly chart.
The pair formed a triple-top earlier today before falling on the BOJ announcement. Similarly, the pair regained some ground as buyers tried to break above the 100-hour MA on Kuroda's presser but we're seeing that fail as sellers win out.
Not only that, sellers have even broken through the 200-hour MA and that means sentiment for the pair is biased towards the downside now. The next level of support to look out for is the 88.11 level at the 50.0 retracement.
